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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELAT ltlG TO
THE TANJUNGKARANG/TELUKBETUNG, WATER SUPPLY PROJECT
WAY LINTI SCHEME, LAMPUNG, INDONESIA

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MEMORANDUM OF UNDERSTANDING RELATING TO
THE TANJUNGKRANG/TELUKBETUNG, WATER SUPPLY PROJECT
WAY LINTI SCHEME, . LAMPUNG, INDONESIA

GENERAL

1. THIS MEMORANDUM expresses the understandings of the
Government of the Republic of Indonesia and the
Government of Australia concerning the responsibilities and contributions respectively of the two
Governments in regard to the Tanjungkarang/Teluk betung Way Linti Water Supply Scheme (hereinafter
referred to as the Project) located in Lampung
Province, South Sumatera.
The Project is intended to augment the supply of
water to the city of Tanjungkarang/Telukbetung as
further described and detailed in Annex 1 to this
Memorandum.

AUTHORITIES

2. The Executing Authorities for this Project will be:
For the Indonesian Government : DIRECTORATE GENERAL
OF HOUSING,BUILDING PLANNING AND URBAN DEVELOPMENT
OF THE MINISTRY OF PUBLIC WORKS ( DIREKTORAT
JENDERAL CIPTA KARYA;DEPARTEMEN PEKERJAAN UMUM).
For the Australian Government

THE AUSTRALIAN

DEVELOPMENT ASSISTANCE BUREAU OF THE DEPARTMENT OF
FOREIGN AFFAIRS.
The Australian Development Assistance Bureau may
nominate suitable qualified agents to undertake any
part of its functions on its behalf.
DURATION

3. This Memorandum will take effect from the date of
its signature and the Project will be deemed to have
commenced from that date.
The Australian contribution to the Project and
all undertakings given herein will cease two years
after the date of signature of this Memorandum or
on such other date as may subsequently be agreed
to between the two Governments.
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PROJECT

4.

ORGANISATION

Responsibility for development and direction
of the Project will be vested in a Project Coordinating Board, whose chairman wi 11 be appointed
by the Indonesian Government.

Membership of the

Board will include the Australian Team Leader, who
is to be appointed by the Australian Executing
Authority in consultation with the Indonesian
Government.

Membership of the Project Co-ordinating

Board will also include representatives of the
Indonesian Government Ministry referred to in
Clause 2 above, or nominated at the discretion of
the Indonesian Government, as well as a nominee
designated by the Australian Embassy, Jakarta.
The Board will meet not less than twice each year.
5.

Functions of the Project Co-ordinating Board will
include
(a)

reviewing and reporting on progress to the
two Governments; and

(b)

recommending to the two Governments changes
in program, budget and future development.

RESPONSIBILITY

6.

Overall responsibility for this Project will rest
with the Government of Indonesia.

The final

authority for decisions on implementation of the
agreed works program shall rest with the Directorate
General Cipta Karya after consultation with the
Australian Team Leader.
CONTRIBUTIONS

7. The contributions of the Indonesian and Australian
Governments are detailed in Annexures 2, 3 and 4
and are es timated to value Rp.450,000,000 and
$A 1,900,000 respectively.

Disburs ement of the

Indonesian and Australian Governments' contributions will be subject to the normal parliamentary
approval of annual appropriations.
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EVALUATION

8.

An evaluation of progress of the Project may be
made at times arranged between and mutua lly con ven ient to, the Indonesian and

Australian

Governments. Such an evaluation may be undertaken

by a joint investigation team appointed by the
two Governments and independent of staff involved
in the Project.
PERSONNEL

9.

For the purposes of this Project, the Indonesian
Government will, in accordance with prevailing
laws and regulations, facilitate the employment
by the Australian Government or its agent of
personnel as required for the Project and established between the two Governments by :
(a)

granting exemption from income or other
taxes on project salaries and allowances;

(b)

granting exemption from impo r t and other

duties on personal and household effects;

(c)

granting exemption from taxes and duties
on the purchase in Indonesia of one locally
assemb l ed motor vehicle per expert on
condit i on that it either be exported, so ld
to a person who has the same p rivil eges or
duty paid on itsassessedvalue at time of
sale with in Indonesia.

The expert's assign-

ment should be on a long term basis or at
least a 12 (twelve) consecut i ve months period.
(d)

granting to Australian project personnel
all

rights and entitlements accorded to the

aid personnel of any other donor country
and
(e)

expedit ing the issue of all documentation
required for the entry of, and performance
of work by, proj ect personnel, including
work perm i ts or certificates for e li gible
persons.

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SUPPLIES

10.

(a)

The Indonesian Government will, in accordance with prevailing laws and regulations
either exempt from import duties and other
taxes or pay such duties on all goods
supplied for the Project;

Prior to such

importation the Australian Government will
submit a master list of all supplies to be
supplied by the Australian Government to the
Indonesian Government ,
(b)

The Indonesian Government will facilitate
movement of Project equipment and supplies
by providing appropriate customs and
wharfage facilities in the port of entry
and will be responsible for the expeditious
transport of such equipment and supplies to

the site ; and

(c)

Project equipment and supplies provided by
Australia will be available for

th e

un-

restricted use of the Project and s hall not
be withdrawn from such use without the
consent of the Project Coordinating Board.
The Australian Team Leader in consultation
with the Indonesian Project Manager shall
exercise administrative control over such
supplies for the duration of the Project.
LIABILITY

11.

The Indonesian Government will be responsible
for dealing with any claims which may be brought
by third parties against Australia and its
experts, agents or Australian pe rsonnel and will
hold harmless Australia and its experts, agents
and personnel in case of any claims or 1 i abil ities
resulting from operations under this Memorandum.
Thi s provision will not relieve any person from
li ab lity for any criminal, grossly negligent
of fraudulent act.

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SECUR ITV

12.

The Indonesian Government will arrange for
any protection deemed necessary to ensure the
safety of Australian personnel, project and
personnel equipment both at the project location, in transit and on any other official
representational activity in Indonesia.
The Australian Gover nment wil l ta ke reasonable
precautions to ensure that Australian personnel
have due regard for local traditions and
customs.

SETTLEMENT OF

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DIFFERENCES

Any differences arising out of the interpretation or implementation of the Memorandum
shall be settled amicably by consul t ation or
negotiation between the two Governments.

AMENDMENTS

14.

Amendments to this Memorandum may be made at
any time by an Exchange of Letters between
the two Governments.

ANNEXURES to this Memorandum form an integral part of it.

SIGNED in Jakarta, in duplicate, this fifth day of February 1981.
FOR THE GOVERNMENT OF

FOR THE GOVERNMENT

THE REPUBLIC OF INDONESIA

OF AUSTRALIA

Signed

Signed

(POERNOMOSIDI HADJISAROSA)

(THOMAS K. CRITCHLEYf

Minister of Public Works

Ambassa dor

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ANNEX 1

THE TANJUNGKARANG/TELUKBETUNG
WAY LINTI WATER SUPPLY SCHEME IN INDONESIA

1. Project Description
Investigation by both Australian and Indonesian authorities
has indicated that the existing water supply system in Tanjungkarang
is inadequate and does not provide sufficient water to satisfy
consumer requirements.

There is a critical shortage of water from

the existing water sources, inadequate storage to overcome seasonal
variations in supply from the water sources and to overcome daily
peak consumptions, and distribution difficulties in the existing
water reticulation pipework.

Remedial works are urgently required

to overcome this shortage and to ensure that existing consumers are
adequately supplied with safe water.
The major component of the remedial works is

the augme ntation

of the water supply by tapping springs known as Way Linti 1 and
Way Linti 2, and for this reason the Project has been called the
Way Linti Water Supply Scheme.
2. Proposed Works
The Project comprises the design, manufacturer, supply and
construction of the following
(a)

a springs capping system which will collect and divert water
from springs located on the northern slopes of Gunung Betung,
and which are referred to as the Way Linti springs,

(b)

a bulk supply main of 350 mm nominal diameter for a di stance
of 12.2 kilometres from the springs capping system,

(c)

a bulk s upply main of 300 mm nominal diameter from a po int
12.2 kilometres from the Way Linti Springs

to a service

reservoir to be constructed with top water level at RL 145
and at a s ite approved by the Indon es ian Government

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ANNEX 1
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(d)

a chlorination facility, with an automatic (proportional
dosing) water operated feeder, on the bulk supply

main

adjacent to Jalan Imam Bonjol approximately 2.8 kms. from
the springs
(e)

a temporary break pressure facility on the bulk supply main
approximately 3 kms north of the Rl 145 service reservoir ;

(f)

a prefabricated steel service reservoir with top water level
at RL 145 of approximately 5.1 megalitres capacity ;

(g)

a trunk main or 600 mm nominal diameter of AC piping from
the service reservoir at RL 145 via Jalan Cut Nyak Din to

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Jalan Raden Saleh ;
(h)

pipework additions and alterations or interconnections to
the existing reticulation system ;

(i)

chlorination facilities at the existing Kemil ing reservoir
including all necessary alterations and additions to
existing pipe work ;

(j)

an interlinking bulk supply main from the existing reticulation mains in Jalan Imam Bonjol to the break pressure facility

(k)

clearance for and formation of a maintanance inspection track
along parts of the pipeline not adjacent to the public road,
and

(1)

construction of vehicular access to the chlorination facilities
and break pressure facility.

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ANNEX 2

THE TANJUNGKARANG/TELUKBETUNG
WAY LINT! WATER SUPPLY SCHEME IN INDONESIA

AUSTRALIAN GOVERNMENT CONTRIBUTION
1.

The estimated cost of the Australian Government contribution
is $A 1,9mil1 ion.

2.

The Australian Government wi 11 :
(a)

provide design for all components of the Project;

(b)

provide technical specifications and drawings for all
components of the Project to be constructed by Indonesia;

(c)

supply all pipes, fittings and valves for the bulk supply
main ;

(d)

supply all equipment for both chlorination facilities

(e)

supply all pipes, valves and equipment for the break
pressure facility

(f)

supply all materials for and erect the service reservoir;

(g)

supply all pipes and fitting s for the trunk main f rom the
service reservoir to Jalan Raden Saleh;

(h)

supply all pipes, fittings and valves for the additions and
alterations or interconnections to the existing reticulation
system, the interlinking bulk supply main and pipework for
the Kemiling reservoir ;

(i)

provide professional and technical advisers on long-term
and short-term assignments as required and the payment of
their salaries, allowances and travel costs. The est i mated
requirements for Australian long-term personnel are li sted
in Annex 3 ;

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ANNEX 2

(j)

personal specialised office supplies, not including
furniture, for Australian personnel ;

(k)

provide and maintain vehicles as 1 isted 1n Annex 3 for
use by Australian personnel ;

(1)

meet the costs of drivers for those vehicles under the
supervision of Australian personnel

(m)

provide accomodation for Australian personnel

(n)

deliver all offshore materials and equipment to wharf at
port of entry Tanjung Priok Jakarta.

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ANNEX 3

THE TANJUNGKARANG/TELUKBETUNG
WAY LINTI WATER SUPPLY SCHEME IN INDONESIA

AUSTRALIAN STAFFING
Team Leader/Engineer
Works Supervisor
Additional short-term personnel as requir ed

AUSTRALIAN SUPPLIED VEHICLES

3 Station Wagons

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4x4

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ANNEX

4

THE TANJUNGKARANG/TELUKBETUNG
WAY LINTI WATER SUPPLY SCHEME IN INDONESIA

INDONESIAN GOVERNMENT CONTRIBUTION
1.

The estimated cost of the Indonesian Government

contribution

is Rupiahs 450 million.
2.

The Indonesian Government will
(a)

acquire land for the springs cappings, bulk supply main,
chlorination facilities, break pressure facilities, service
reservoir, inter] inking mains and trunk ma in for storage of
project material s, and all easements for access and service
roads to the various facilitie s and construction sites ;

(b)

construct spring cappings, bulk supply ma ins, chlorination
facilities, break pressure facilities, foundations

for

service reservoir, inter! inking mains, trunk mains,
reticulation alterations, and access roads
(c)

deliver Australian supplied materials from port of entry
to the project sites ;

(d)

deliver Australian supplied materials which are manufactured in Indonesia from factory to Project sites;

(e)

provide staff with the requisite sub-professional, skilled
and semi-skilled supporting personnel, and the payment of
their salar ies and allowances ;

(f)

vehicles and equipment required by Indone s ian project
personnel ;

(g)

provide acceptable office accommodation and furniture for
Austral i an personnel ; and

(h)

all other materials, serv ic es and fac iliti es required for
execution of the Project.

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